Credit Ratings

Standard & Poor's Ratings Services

The stable outlook reflects our view of Gazprom Neft's currently robust performance, supported by favorable oil prices, even factoring in recently announced acquisitions. At the current rating level, we would anticipate that Gazprom Neft would achieve FFO to adjusted debt of above 50% and adjusted debt to EBITDA of about 1.5x, under our midterm oil price working assumptions of $70 per barrel.

International Scale in Foreign Currency

International Scale in National Currency

National Scale (Russia)

We believe that Gazprom Neft should be able to manage the changes in the Russian tax regime currently being discussed (especially the equalization of export duties on light and heavy products). Although the company's refining cover is among the highest in the industry, its product mix is relatively favorable, its product exports are low, and higher export duties on refined products should, in our view, be offset by lower export duties on crude oil.

We might lower the rating if Gazprom Neft makes large debt-financed acquisitions that are not offset by parental support.
On the other hand, we might revise the stand-alone profile upward on stronger evidence of parental support in the future.

Moody's Investors Service

On July 4, 2008 Moody's Investors Service upgraded the senior unsecured ratings of JSC Gazprom Neft from “Ba1” to “Baa3”. As part of the upgrade of the investment ratings, the Ba1 Corporate Family Rating and Probability of Default Rating have been withdrawn.

International Scale in Foreign Currency

JSC Gazprom Neft ratings have a stable outlook, which is based on the expectation that the recently upgraded investment grade rating will remain unchanged over the immediate term due to the fundamental factors. To maintain the current rating Moody's expect the Company to continue delivering a robust operational and financial performance, while adhering to its financial policies and business plan targets.   

JSC Gazprom Neft’s investment grade ratings expand its borrowing options and reduce the cost of loans.